Relief granted to service NZ clients

A conditional exemption has been granted for Australian advisers to be able to continue to service clients in New Zealand.

New laws in New Zealand effective from 1 July 2011 effectively prohibit Australian financial advisers from giving advice to anyone in New Zealand, even if it is in relation to their Australian financial affairs or Australian financial products, according to Holley Nethercote lawyers.

Advisers servicing New Zealand clients from this date may be in breach of the New Zealand financial advisers regime, the firm stated.

But on 30 June, in response to an application from Holley Nethercote to New Zealand government regulators the Financial Markets Authority (FMA), an exemption was granted providing conditional relief from many of the obligations set out in the New Zealand legislation, the firm stated.

The Financial Advisers (Australian Licensees) Exemption Notice 2011 means Australian Financial Services Licensees can advise to New Zealand clients without having to adhere to all of the requirements of the New Zealand regime provided they meet certain requirements, according to Holley Nethercote.

Licensees would need to become a member of a suitable New Zealand dispute resolution scheme; register as a financial service provider in New Zealand; appoint an agent for receiving notices in New Zealand; prepare written notice to the FMA informing it that licensees will be acting in accordance with the exemption; and prepare a written disclosure for advisers to provide to New Zealand retail clients.